Andorra

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Published on: 2023-03-28 10:58:20

Last modified: 2023-04-25 13:35:43

Rating: ★★★★★ [ 2 Votes ]

Reference(s) Andorran Financial Authority

Tax tables last updated: 2023-05-01 09:49:33 [Update Rates]

Currency Euro [ EUR ] [ € ]

Introduction

Below are specific calculators for the calculation of Personal Income Tax (PIT) and Corporation Income Tax (CIT) in Andorra. These tax calculators are for resident and non-resident tax filing status in Andorra. The Andorra tax calculators are updated with the rates and thresholds up to and including the 2023 tax year, specific tax rates and thresholds can be reviewed in the Andorra tax tables.

Tax in Andorra: An Overview

Andorra is a small, landlocked country located in the Pyrenees mountains between France and Spain. It is known for its scenic mountain landscapes, ski resorts, and its status as a tax haven. If you're considering moving to Andorra or starting a business in the country, it's important to understand the tax system. This guide will provide an overview of taxes in Andorra and how to use tax calculators to estimate your tax liability.

Income Tax in Andorra

One of the biggest advantages of living in Andorra is the low levels of income tax. That's right - Andorra has no income tax in certain circumstances for residents and low levels of taxation. This makes it an attractive destination for high-net-worth individuals and businesses looking to minimize their tax burden. However, it's worth noting that non-residents may still be subject to income tax on any income earned in Andorra.

Who Qualifies for Tax Residency in Andorra?

In order to qualify for tax residency in Andorra, you must spend more than 183 days per year in the country. Additionally, you must not be a tax resident in any other country. Once you have established tax residency in Andorra, you will be exempt from paying income tax on your worldwide income.

Tax Calculators for Andorra

If you're thinking about moving to Andorra or starting a business in the country, it's important to understand your potential tax liability. Our tax calculators can help you estimate your income tax, VAT, and property tax in Andorra. Our calculators are easy to use and provide accurate estimates based on the latest tax laws and rates in Andorra.

Value Added Tax (VAT) in Andorra

In addition to the low rates of income tax, Andorra also has low VAT rates, you can see the latest VAT rates in Andorra here. This makes it an attractive destination for shoppers looking to save money on luxury goods and other purchases.

VAT Rates in Andorra

While the standard VAT rate in Andorra is 4.5%, there are also reduced rates for certain goods and services. For example, food, pharmaceuticals, and basic necessities are subject to a reduced VAT rate of 1%.

Property Tax in Andorra

Property tax is relatively low in Andorra compared to other countries. Property owners in Andorra are subject to an annual property tax of between 0.2% and 0.5% of the property's assessed value. This tax is used to fund local services and infrastructure projects.

Inheritance and Gift Tax in Andorra

Andorra does not levy inheritance or gift tax on its residents. This means that individuals and businesses in Andorra are free to transfer assets and wealth to their heirs or beneficiaries without incurring any tax liability.

Conclusion

In conclusion, Andorra is a tax-friendly destination for individuals and businesses looking to minimize their tax liability. With no income tax for residents, a low VAT rate, and relatively low property taxes, Andorra is an attractive destination for those looking to keep more of their hard-earned money. Use our tax calculators for Andorra to keep on top of your tax liabailities.